HAPAG-LLOYD “NOT CONVINCED” BY MEGA-MERGERS

HAPAG-LLOYD “NOT CONVINCED” BY MEGA-MERGERS

HAPAG-LLOYD “NOT CONVINCED” BY MEGA-MERGERS

   Hapag-Lloyd said that it is still not convinced of the benefits of mergers and takeovers in liner shipping.
   “We are keeping a very attentive eye on developments,” said Bernd Wrede, chairman of Hapag-Lloyd, referring to industry consolidation among container
shipping lines. “However, size alone is no advantage in itself, and the financial results of the so-called mega-mergers have so far not been convincing.”
   Wrede did not name any particular merged operator that he regarded as not producing good results.
   It is known that most big European container carriers, such as Maersk Line, P&O Containers, Nedlloyd Lines, DSR-Senator, Hamburg-Sud and CMA CGM, have been involved in mergers or takeovers in recent years. Hapag-Lloyd Container Line and fellow German carrier Hamburg-Sud had discussed a merger plan in 1997, but did not go through with it.
   Hapag-Lloyd’s annual carryings of about 1.5 million TEUs are now less than half the traffic volume moved by Maersk Sealand and P&O Nedlloyd.
   However, Hapag-Lloyd Container Line said that it will continue to cooperate with the Grand Alliance, “the largest consortium worldwide,” alongside P&O Nedlloyd, NYK, OOCL and Malaysia International Shipping Corp.
   Hapag-Lloyd said it will cooperate particularly on inland operations, because landside costs represent 80 percent of total costs.
   In a separate development, Hapag-Lloyd has named a new 4,800-TEU containership the “Antwerpen Express.” The ship is the first of a series of seven 4,800-TEU new vessels built in South Korea and due to be delivered to
Hapag-Lloyd by the end of the year.